Competition

Kroger is the nations largest traditional retail supermarket chain in the United States and is the second largest general retailer, behind Wal-Mart.  Supervalu and Safeway are major competitors, but Kroger's biggest competitor is Wal-Mart and faces many competitive pressures from Wal-Mart.  According to market analysts, in response to pressure from its bigger rival, Wal-Mart, which has become more aggressive about cutting its prices on food products to lure customers away from discount and traditional grocery competitors, Kroger offered promotions and discounts on dairy and meat products to keep their customers.  But despite Wal-Marts efforts to lower prices to lure customers from Kroger and other grocers into Wal-Mart, Kroger's 1st quarter earnings were higher than expected.  Kroger has an opportunity to gain food manufacturers and suppliers that stand to lose sales when rival brands are featured as temporary, fast-moving Wal-Mart rollbacks.  The demands by Wal-Mart to suppliers to cut prices presents an opportunity for suppliers to move to Kroger.  According to Kroger CEO David Dillon, "It cannot be just about price. If it is just about price, that really is Wal-Mart's game and not our game, so we don't focus just on that."  Kroger feels that customers are basing their shopping decisions on things other than just price.  So, in addition to keeping prices competitive, Kroger is focusing on improving the overall customer shopping experience.  http://finance.yahoo.com/news/Grocer-Krogers-1stqtr-net-apf-547066984.html?x=0&.v=7